The next generation of electric vehicles (EV) has arrived and, this time, Tesla (Nasdaq: TSLA) wasn’t the one leading the way… This time, it was Nio Inc – ADR (NYSE: NIO). Working together with NVIDIA Corporation (Nasdaq: NVDA) and QUALCOMM Inc. (Nasdaq: QCOM), Nio flipped the EV market on its head when the company released its newest self-driving electric car. A car that could rival Tesla’s Model 3… With EV stocks continuing their journey to the top of the stock market, investors are asking themselves if NIO is a buy now, or if they’re looking at the new Nikola Corporation (Nasdaq: NKLA).
Is NIO a Buy Now?
Over the weekend, NIO partnered up with Nvidia and Qualcomm to develop a new generation of electric vehicles: Its first luxury sedan with self-driving features and a battery life to challenge Tesla.
The video NIO released showed a car driving itself to Silicon Valley. That’s right traders, you read that correctly. There was no physical driver turning the steering wheel or pushing down on the pedal.
As a result, NIO stock gapped up 10% (from $58 to $65) within minutes of trading on Monday morning.
So, is NIO a buy now and will NIO’s share price hit $100 by the end of 2021?
We like to think so. I
Or, we did, until something occurred to us: If we’re thinking this, so are hundreds of other traders… so we’re probably going to witness a pullback soon. Maybe $40 or $50 a share depending on the overall market.
And the reason why we think this all has to do with Tesla. Is NIO a buy?
Just last week, we saw Tesla’s stock price soar as Elon Musk became the richest man in the world — even surpassing Amazon.com’s Jeff Bezos.
Every trader and their mama assumed that Tesla would hit $1,000 by the January 2021 expiration date, which will be at the end of this week.
But you know what they say about assuming. And what do you think happened Monday morning? TSLA stock pulled back more than $50 to $808.
Since the stock market likes to rhyme with history, we have a solid idea for how things will play out with NIO over the rest of the year.
Make sure to watch the video below to answer the question “Is NIO a buy?” and see where the stock could be by the end of 2021.